It usually is bad to discover yourself being without the funds you’ll need, although certainly not even more so compared to when the economy is proceeding thru lean times. That is when banking institutions are extremely hesitant to approve personal loans to prospects that want them most. In a case like that, you will find a choice known as a commercial hard money lender. These are independent creditors whose conditions for providing mortgages tend to be a bit more casual compared to those associated with the financial institutions. Whilst selecting this solution, nonetheless, you must understand that you’re sure to pay an increased rate of interest.

Approaching a hard lending organization can be a good option as long as you do not need a large amount. Borrowing in this way for a property purchase can be a high risk. The lenders will make you pay if they have to carry the risk involved.

The loan application procedure is much simpler than that at a bank. Borrowers stand a better chance of approval for an application to these lenders. They are often private individuals. Sometimes they are privately owned financial houses.

The paperwork is simpler, but the interest rates are usually higher than those of the banks. People who have a poor credit record often manage to borrow money from a hard lending service. Many people have found borrowing money in this way advantageous.

You are required to produce proof of your income when you want to get a loan in this way. This is the first step towards the loan, whoever is the lender. So, before approaching a banker, you should ensure that you have the necessary documents showing you earnings. The record can be anything like bank transaction statements, tax receipts or other financial records.

Information regarding loan providers may be found on the internet and also in the yellow pages. Many of them also advertise their services in the local newspapers. You can also ask your bank if they recommend a private lending company. They may be willing to advise you if they cannot approve your application.

Make sure you are familiar with terms and conditions of several loan places before you make your choice. The conditions and interest rates will vary from lender to lender. You do not have to pay a high interest rate to borrow cash. However, the private organizations will always charge a higher rate than a bank.

Time will always be a deciding factor. If your application is approved, you must ask when the money will be available. You also need to know exactly how long the repayment time period will be. A longer repayment period will mean lower monthly payments, but it is important that you compare the original amount borrowed with the final total that you pay back. You do not want to pay back too much more than you have borrowed.

If you are borrowing money to purchase property, it is always better if the property will generate some form of income. As long as you know and understand all the terms and conditions of wholesale hard money lenders, you can use this service sensibly and to your advantage. It may be a great help to do so

It is easy to oftentimes utilize personal hard money loans in addition to commercial financial loans for several investment circumstances.

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What Is a 2nd Mortgage or 3rd Mortgage?
By Trevor Hickey

You may have heard the terms – 1st (first) mortgage, 2nd (second) mortgage, or 3rd (third) mortgage. These terms simply refer to the order of the mortgages on title. “Title” simply refers to the document that references who owns the property and who has a financial interest in it. So – if you buy a house and you get a mortgage to do so – that mortgage will be in 1st position.

Now – another valid question is why doesn’t everyone offer 2nd or 3rd mortgages (since they pay the investors more)? Well – you want to be the first mortgage holder (or at least 2nd) (“holder” means that you have leant the money and that you are the lender). The reason why you want to be the 1st (first) mortgage holder is simply because then you have priority if the property ever goes into foreclosure (“foreclosure” means you haven’t made your payments and that the lender(s) are taking the house and trying to sell it to get their money out of it). The reason why you want to be in 1st (first) position is because, when a property goes into foreclosure, you get paid first when it sells (this is huge). The reason why this is huge is because when you try and sell a house (as a lender/mortgage holder) you will likely try and sell it as fast as possible so that you can get your money back asap. And since you are trying to sell this thing fast – you will likely sell it for less than it’s worth and if you don’t have enough money to pay back all the loans that have been borrowed against it then those in 2nd and 3rd position may end up not getting how much they are owed – ie. if your 1st mortgage that you owe is $50,000 – your 2nd mortgage is $25,000 and your 3rd mortgage is $15,000 – then you owe a total of $90,000. If your house is worth $150,000 then there is lots of room to pay all these bills; however, since you tried to sell it asap and you could only sell it for $100,000 – then there is only $10,000 extra – now we can’t forget the lawyer and Realtor (who are needed to sell the thing – so they get paid 1st, and then the 1st, 2nd, and 3rd mortgages are paid. Seeing as Realtor and lawyer fees can easily get to be more than $10,000 – then the third mortgage (and possibly the 2nd mortgage) won’t get all their money back.

So – now you can see the dangers of being a 2nd or 3rd mortgage lender/holder. You may then ask – why doesn’t the 2nd or 3rd mortgage company just foreclose and then sell the property for what it’s worth and then get their money out too? Well – if you are a 2nd or 3rd mortgage lender, you have to pay the mortgage payments on the mortgages which are ahead of you (otherwise they may go into foreclosure too – and if they sell it before you then you could have just paid a bunch of legal fees and not been paid back when the house sells). So – the moral of the story is simply this – sometimes it does pay to get a more expensive 2nd or 3rd mortgage than to re-do your 1st (or 2nd) mortgage. Also – there is a lot of risk associated with holding a 2nd or 3rd mortgage – so, the rates and fees that they charge are often justified.

A good way to view how many mortgages you have is to think “if I won the lottery – how many mortgages would I have to pay out to own this house completely (and not owe anyone anything on it)?” You may then ask why you’d ever want a 2nd (second) mortgage or a 3rd (third) mortgage?

Trevor Hickey, B.A. is a Calgary Mortgage Associate with Concord Mortgage Group Ltd. in Calgary, Ab http://www.mortgagebrokercalgary.info trevor@concordmortgage.ca (403) 860-8738

Article Source: http://EzineArticles.com/?expert=Trevor_Hickey

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http://www.pbs.org/billmoyers BILL MOYERS JOURNAL travels to ground zero of the mortgage meltdown — Cleveland, Ohio. Correspondent Rick Karr takes viewers to Slavic Village, one of the hardest hit neighborhoods in the nation when it comes to the spate of foreclosures caused by the subprime mortgage crisis.. Aired Friday, July 18, at 9p.m. on PBS (check local listings). For more: http://www.pbs.org/billmoyers

Duration : 0:20:56

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Jacksonville Bankruptcy Attorney Chip Parker explains how a homeowner can wipe out (strip) a second mortgage or HELOC in a Chapter 13 bankruptcy.

Duration : 0:5:17

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http://www.cambridge-credit.org — President Obama recently announced that his housing initiative was ready to expand to include second mortgage modifications. The Administration believes that ensuring a homeowners ability to stay in their home is critical to stabilizing the housing market. Once thats achieved, the logic is that the overall financial system will recover in turn. Watch this week’s webisode from Cambridge Credit Counseling Corp. to learn more. Host: Community Outreach Director, Thomas J. Fox.

Duration : 0:3:29

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Stop the foreclosure process dead in its tracks, keep your home, and save money every single month. Our Principle Reduction Program, which involves litigation against the bank in Federal court may result in the elimination of 40-60% of your current loan balance on your home and will lower your monthly mortgage payments.

mortgage foreclosure fraud It does not matter if you are late on your payments, even if you’re months behind. If your mortgage qualifies (and literally thousands of mortgages do qualify due to a possible breach of contract many mortgage companies are in with the home owners) note securitization then you can breathe a sigh of relief because you and your family can, in fact, stay home!

Remember, if your home was purchased or refinanced between 2002 and January 1, 2008 there’s a very good chance your home mortgage was securitized and sold as an investment, and therefore the mortgage company may have been paid already and is in breach of their contract with you. Few companies have the expertise to get the facts on each and every mortgage, but our expert resources will discover the truth and possibly alleviate all of your late payments, 100% of your negative equity and negotiate a dramatic reduction in payments too.

Duration : 0:7:49

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http://realestatemarketingthisweek.com/real-estate/the-old-rules-of-real-estate-financing-no-longer-apply-and-suze-ormond-should-know-that/ – The old rules no longer apply and Suze Ormond should know that. –

Part 7 – We have Dan Havey the author of Real Estates Future in the studio today.

Michael, I was just curious, back when I got into the industry many, many years ago there used to be a rule of thumb that if you were going to refinance you had to lower your interest rate by at least two percent and I know as time went along and products changed that really became unnecessary, but I am just curious in todays mortgage market its a lot different than we were dealing with even two years ago. Is that still true that there is a 2% rule? Whats going on now?

I happened to catch Suze Orman on television and she was talking about mortgages, the caller who called in to the program, the question became I believe similar to what Dan just asked, her comment was that basically if you’re in 6% interest rate or above now is the time to re-fi. That is what she said, a blanket recommendation. I know a lot of people put a lot of credence into what she says, maybe you could speak to that, the lowest interest rates you’ve seen in your career, you have been doing this for a while.

I have, and they are. You know there was a lot of speak the last couple weeks about the Fed, the Fed funds rate by the way is the lowest it’s ever been in history. As of this week the discount rate is to the point that banks are lending money to each other at nothing, the Fed funds rate for intrabank lending is at zero, the problem is the banks don’t have any money.

To be serious about the refinancing, because its a serious topic, I think people are starting to see their mail boxes filled with lots of advertising crap about refinance. I believe that doing the refinance is no different from doing a loan modification or buying a house, you need to sit down with the human being that’s local, that you can know is a legitimate source. You’re going to give all this personal information about you, your family, your kids, your Social Security number, you want to make sure you have somebody there that you know whos legit.

In regard to the old rule of thumb 2%, nothing could be further from the truth, and I will expand, but to the point of Ms Ormond that if youre at 6% or higher, that is a blanket statement and blanket statements never work. We just did a refinance for a guy who was at 5 1/2%, and it makes sense. Every situation is different, as far as how much do I have to lower my interest rate to make it work? It depends on the type of mortgage that you get.

The only type of loan to get today in December of 2008 is a 30 year fixed. I know that one of the things that was really interesting to me, and that you and I have referred clients to one another for several years, so we share a number of clients, were familiar with those families and those households, and this is Wednesday, on Monday and Tuesday of this week I’ve had seven phone calls from clients who you’ve already done loans for, refinances for, asking if this is the time to refinance a loan that is only a couple years old.

And I know in several of those cases the answer is yes you’re actually helping families right now with that process. I am and we do. To answer the question, you need to determine what the payback term is, in other words when your refinance is done it’s a new loan, there’s the title insurance, appraisals, lots of different things may need to be done, not in every case, but in most cases there are costs associated with that. The cost has to be offset by the amount of savings. Its a breakeven analysis

Absolutely it is, the shorter the breakeven the better the loan. I am working on a case right now which is going to be done in the next couple of days where the guy lowered his interest rate by an1/8 of a percent and it made sense for him. It’s not for everybody, 2 percent or lower, 2% is significant, now you’re talking about really significant savings in terms of cash flow… http://realestatemarketingthisweek.com

Duration : 0:6:31

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The secret mortgage servicers don’t want you to know is they can make MORE money off of homeowners when they keep your loan in default. A former employee of loan servicer EMC tells the inside story why so many people can’t get their loan out of default.

Duration : 0:4:57

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Don’t miss the latest info on what is affecting our Real Estate and Mortgage Market. For all the details, check out my site at: http://www.MikeMunzing.com or www.YouTube.com/MunzingMortgage
Mike Munzing 949-689-5626
MUNZING MORTGAGE GROUP

Duration : 0:10:56

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